Since entering into a Business Corporation agreement with Standard Bank in 2012, the partnership with Mizuho Bank has seen many landmark deals and legacy transactions throughout Africa. On 26 August at TICAD-8 in Tunisia, the agreement has been expanded to include ESG standards. This will ensure that capital allocations made moving forward adhere to agreed socio-economic principles that both promote the growth of and protect our continent.

Over the past two decades, bilateral trade between South Africa and Japan has been both constructive and expanding. According to the Department of International Relations and Cooperation, over Yen 100-billion in Japanese investments has been sown into South Africa since 1994. With investment-friendly initiatives such as the African Continental Free Trade Area (AfCFTA) and the Tokyo International Conference on African Development (TICAD), the two countries are purposefully enhancing and strengthening their relations to drive Africa’s growth.

Robert Cleasby, Head, FI, Client Coverage, Financial Institutions at Standard Bank Group, says “the strategic rationale for attending the TICAD 8 conference is to strengthen the capital market connection between our presence markets in Sub-Saharan African markets and the capital market of Japan that has experienced low growth over the past decade. We’ll be able to achieve this through our close collaboration with Mizuho bank.”

Understandably, the participation of Japanese corporations and institutional investors has significantly supported the continent’s ability for economic recovery and journey to position itself as the next frontier for foreign investment. 

The Japan-Africa investment corridor

To facilitate the increasing concentration of investments in Africa, Standard Bank established a Japan desk in 2019 to focus on Japanese corporates operating across the bank’s markets. The Memorandum of Understating (MoU) framework specified the support structures to enable these corporates to further grow the Japan-Africa trade and investment corridor.

Carl Henriksen, Head of Japanese Corporates: South Africa, expands on this. “We are the ideal partner to assist Japanese clients to negotiate the intricacies of doing business in Africa. Our cooperation with leading institutions has propelled the ventures of various Japanese clients across a broad spectrum of sectors, forward. As a result, we are constantly solidifying our position as being the leading banking partner to Japanese corporates operating in Africa.”

ESG essential for sustainable financing

While financial investment is crucial to realise an African renaissance, what will ensure a sustainable and prosperous future for all people, communities, and businesses on the continent is to bolster the business landscape on sound environmental, social, and governance (ESG) standards. 

Understanding this, the Mizuho Financial Group (Mizuho) is entering into an Environmental, Social, and Corporate Governance Sustainability Memorandum of Understanding (MoU) agreement today with Standard Bank South Africa at the TICAD-8 conference, held in Tunisia this year.

Of this notable occasion, Jessica Gadimang, Standard Bank’s Executive of Client Coverage: Financial Institutions, says: ““The Standard Bank Group celebrate ten years of a most successful partnership with Mizuho Bank. The relationship has grown enormously since inception and testament to this is the extension of our Business Corporation agreement to include Environmental Social and Governance sustainability.

This MoU will allow Standard Bank Group to remain the pre-eminent financial institution across Sub Saharan Africa and continue to provide a gateway partner to Mizuho bank’s clients on a continual basis.   The mutually beneficial cooperation with Mizuho began in 2012 and has now matured to become the flagship partner banking relationship.  We thank the Standard Bank leadership and Mizuho’s executives for their continued support and partnership. Africa is our home, we drive her growth “.

An inclusive African economy

Only three years ago, Mizuho signed an MoU with the Standard Bank Group to strengthen the strategic partnership. By expanding the agreement to include ESG standards to guide future investments made in the continent, capital flow will both safeguard and promote important socio-economic principles. 

Sasha Cook, Standard Bank’s Head of Investment Banking: Western Cape and Executive for Sustainable Finance, adds: “The progression and maturation of this partnership aligns with Standard Bank’s goal to enable inclusive and sustainable economic growth in Africa. SBG’s sustainability strategy is based on two pillars, the bank firstly aims to achieve positive SEE impact linked to the United Nation’s sustainable development goals and, secondly, upholding good ESG practices in the way it conducts business as a responsible corporate citizen.”